In this case study, CPL Business Consultants assisted a global ingredients company in opportunity scouting as part of its growth strategy, finding potential acquisition or partnership candidates in health ingredients. This information was used to formulate an acquisition strategy for the M&A pipeline. Subsequently, CPL was retained to assist with approaching these companies and with due diligence when required.
The objective was to find suitable acquisition targets for an international ingredients company and assist in expanding its current portfolio.
The client was a global company operating in 90 countries with an established portfolio of natural health ingredients. The company wanted to expand its offering through partnerships or acquisitions.
The project scope was to identify opportunities in health ingredients, including potential partnerships or acquisition targets. Target areas included natural ingredients or products in specific sub-sectors in broad areas such as gut health and weight management. CPL defined the types of companies or opportunities of interest using a detailed set of criteria. For example, these were related to the size of the company, products and location.
Method & Results
We identified potential targets from a wide range of sources and databases. This included CPL’s extensive proprietary network of contacts which the target sectors. The search was very comprehensive and included, e.g. screening >600 companies from investor networks and scanning ~30,000 patents. The aim was to find ‘below the radar’ opportunities and also those in the public domain.
CPL used its proprietary NAMAP (Non-Parametric Analysis for Acquisitions and Partnerships) methodology to select and rank the best potential targets through a number of iterations. Whilst all companies found at each stage of the project were provided to the client, the final round of analysis included >60 companies which were the best fit to the target criteria. We ranked these companies using the weighted criteria and then made recommendations for each company.
A detailed report was provided with the justification of the scorings used for each company and a spreadsheet which included lists of all companies found (including those rejected at each stage) and analysis. The client was able to populate its M&A pipeline using this information. CPL was also retained to make warm introductions to potential targets and assist with due diligence as required.